Ubisoft’s shares have recently plummeted to their lowest in nearly a decade, unsettling at least one investor concerned that the company is effectively being held “hostage”. Late last month, Ubisoft launched “Star Wars Outlaws,” a high-profile AAA title set in one of the most cherished media franchises. Despite high expectations, the release has failed to rejuvenate Ubisoft’s waning fortunes.
Currently, Ubisoft’s stocks are languishing at a near 10-year low. The creators of the famed “Assassin’s Creed” series have been rolling out titles like “Skull and Bones,” “Assassin’s Creed: Mirage,” and “Prince of Persia: The Lost Crown” with minimal long-term success. Even the much-anticipated release of “Assassin’s Creed: Shadows” seems unable to uplift the company’s share value.
AJ Investments, a minor shareholder, has voiced its dissatisfaction, laying the blame squarely on the major shareholders. It accuses them of mishandling the company and holding the shareholders “hostage.” In a forthright critique, AJ Investments claims:
“Ubisoft is currently mismanaged, with shareholders being held hostage by the Guillemot family and Tencent who are exploiting their positions. The management is more focused on short-term gains to appease investors rather than developing a long-term strategy to enhance the gaming experience. Our firm has in-depth industry knowledge and has been a long-term shareholder in Activision Blizzard. We initiated our position in Ubisoft a few weeks ago and continue to expand it.”
The “Guillemot family” mentioned in the open letter refers to the clan of Ubisoft cofounder Yves Guillemot. Guillemot recently defended the hefty $70 price for “Skull and Bones,” lauding it as a “AAAA” game.
AJ Investments concludes its letter with a proposition to take Ubisoft private and stave off potential takeovers. It also calls for a management overhaul and a return to focusing on the company’s “Core IPs”.
